Operating Segments

6 Months Ended

Jun. 30, 2015

Segment Reporting [Abstract]

Operating Segments

Note 9 — Operating Segments

The Research segment includes the costs of the Company’s research personnel who are responsible for writing the research and performing the webinars and inquiries for the Company’s RoleView product. In addition, the research personnel deliver advisory services (such as workshops, speeches and advisory days) and a portion of the Company’s project consulting services. Revenue in this segment includes only revenue from advisory services and project consulting services that are delivered by the research personnel in this segment. During 2013, the Company began to transition the delivery of project consulting to a dedicated project consulting organization. The transition was essentially complete at the end of 2014 such that the vast majority of project consulting will be delivered by the project consulting organization in 2015.

The Product segment includes the costs of the product management organization that is responsible for product pricing and packaging and the launch of new products. In addition, this segment includes the costs of the Company’s data, Forrester Leadership Boards and events organizations. Revenue in this segment includes all revenue for the Company (including RoleView) except for revenue from advisory services and project consulting services that are delivered by personnel in the Research and Project Consulting segments.

The Project Consulting segment includes the costs of the consultants that deliver the Company’s project consulting services. During 2013 the Company began to hire dedicated consultants to transition the delivery of project consulting services from research personnel (included in the Research segment) to the new Project Consulting segment. Revenue in this segment includes the project consulting revenue delivered by the consultants in this segment.

The Company evaluates reportable segment performance and allocates resources based on segment revenues and expenses. Segment expenses include the direct expenses of each segment organization and exclude selling and marketing expenses, general and administrative expenses, stock-based compensation expense, depreciation expense, adjustments to incentive bonus compensation from target amounts, amortization of intangible assets, reorganization costs, other income and gains (losses) on investments. The accounting policies used by the segments are the same as those used in the consolidated financial statements.

						Project
	Products		Research			Consulting		Consolidated
Three Months Ended June 30, 2015
Research services revenues	$	52,604	$	—		$	—	$	52,604
Advisory services and events revenues		8,255		11,323			10,629		30,207
Total segment revenues		60,859		11,323			10,629		82,811
Segment expenses		11,532		12,808			6,773		31,113
Contribution margin (loss)		49,327		(1,485	)		3,856		51,698
Selling, marketing, administrative and other expenses									(41,300	)
Amortization of intangible assets									(224	)
Reorganization costs									(81	)
Other income and gains (losses) on investments									(89	)
Income before income taxes								$	10,004

						Project
	Products		Research			Consulting		Consolidated
Three Months Ended June 30, 2014
Research services revenues	$	52,322	$	—		$	—	$	52,322
Advisory services and events revenues		9,994		12,672			7,959		30,625
Total segment revenues		62,316		12,672			7,959		82,947
Segment expenses		11,894		13,399			6,438		31,731
Contribution margin (loss)		50,422		(727	)		1,521		51,216
Selling, marketing, administrative and other expenses									(42,561	)
Amortization of intangible assets									(536	)
Reorganization costs									(1,039	)
Other income and gains (losses) on investments									122
Income before income taxes								$	7,202

						Project
	Products		Research			Consulting		Consolidated
Six Months Ended June 30, 2015
Research services revenues	$	104,462	$	—		$	—	$	104,462
Advisory services and events revenues		10,722		21,650			21,164		53,536
Total segment revenues		115,184		21,650			21,164		157,998
Segment expenses		19,881		25,756			13,733		59,370
Contribution margin (loss)		95,303		(4,106	)		7,431		98,628
Selling, marketing, administrative and other expenses									(85,300	)
Amortization of intangible assets									(445	)
Reorganization costs									(3,505	)
Other income and gains (losses) on investments									174
Income before income taxes								$	9,552

						Project
	Products		Research			Consulting		Consolidated
Six Months Ended June 30, 2014
Research services revenues	$	103,115	$	—		$	—	$	103,115
Advisory services and events revenues		12,851		26,648			13,404		52,903
Total segment revenues		115,966		26,648			13,404		156,018
Segment expenses		20,245		27,374			12,115		59,734
Contribution margin (loss)		95,721		(726	)		1,289		96,284
Selling, marketing, administrative and other expenses									(86,221	)
Amortization of intangible assets									(1,075	)
Reorganization costs									(1,888	)
Other income and gains (losses) on investments									95
Income before income taxes								$	7,195